Uber Technologies has officially ended its acquisition of Delivery Hero's Foodpanda in Taiwan, the Germany-based tech firm announced on Tuesday. This decision comes roughly three months after Taiwan's antitrust regulator, the Fair Trade Commission (FTC), blocked the deal, citing competitive issues that could lead to price increases by Uber.

The FTC's concerns centered around the potential market dominance of Uber Eats in Taiwan, which, combined with Foodpanda, would have resulted in a 90% market share. This concentration of power could have led to unfair market practices, ultimately harming consumers. In a recent report, it was found that Foodpanda enjoyed a 52% market share from January 2022 to August 2023, while Uber Eats had 48%. Other food delivery companies, such as Foodomo and various fast-food delivery apps, make up a tiny percentage of Taiwan's market share.

Under the agreement signed on May 14, 2024, Uber is required to pay a termination fee estimated to be around $250 million. The company had initially expected to complete the deal in the first half of 2025, as part of its plan to grow Uber Eats in Asia, particularly by strengthening its presence in Taiwan. The deal also included a separate agreement in which Uber agreed to buy $300 million of newly issued ordinary shares from Delivery Hero.

The terminated deal highlights Delivery Hero's continued withdrawal from the Taiwanese market. In September 2023, the company ended discussions to sell off a package of its Southeast Asian operations, including in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand, to an undisclosed third party. Delivery Hero's food delivery division competes with Grab in Southeast Asia.

In preparation for a potential sale, Foodpanda staged a layoff in September, aimed at streamlining operations. The cuts followed earlier staffing layoffs in 2022 and 2023. The company's decision to terminate negotiations with Uber marks a significant setback in its efforts to divest its Taiwanese operations.

The implications of this deal's termination are far-reaching, with potential consequences for the food delivery market in Taiwan and beyond. As Uber Eats and Foodpanda are the top players in Taiwan's food delivery market, the lack of consolidation may lead to increased competition and innovation in the sector. This development also underscores the importance of antitrust regulators in ensuring fair market practices and protecting consumer interests.

In the wake of this announcement, both Uber and Delivery Hero have declined to comment on the matter. As the food delivery market continues to evolve, it remains to be seen how this development will shape the industry's future trajectory.